Tata Consumer Products Limited (TCPL) is an Indian fast-moving consumer goods company and a part of the Tata Group.
- It is the world’s second-largest manufacturer and distributor of tea and a major producer of coffee.
- The company was formed in 2010 through the merger of Tata Tea, Tata Coffee, and Tata Chemicals’ salt business.
- It is headquartered in Mumbai, India.
- The company’s products include tea, coffee, salt, spices, pulses, and ready-to-eat meals.
- Its brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Salt, Tata Sampann, and Tata Soulfull.
- Tata Consumer Products has a strong presence in India and also has a significant international presence. The company’s products are sold in over 40 countries.
- The company is committed to sustainability and has set ambitious goals for reducing its environmental impact.
- In 2021, Tata Consumer Products was ranked 14th on the Dow Jones Sustainability Index Emerging Markets Index.
Tata Consumer Products Overview
Key facts:
- World’s second-largest branded tea producer (behind Unilever)
- Major producer and distributor of coffee
- Formed in 2010 through the merger of Tata Tea, Tata Coffee, and Tata Chemicals’ salt business
- Headquarters in Mumbai, India
- Products: Tea, coffee, salt, spices, pulses, ready-to-eat meals
- Brands: Tata Tea, Tetley, Eight O’Clock Coffee, Tata Salt, Tata Sampann, Tata Soulfull
- Strong presence in India and international reach (40+ countries)
- Committed to sustainability with ambitious environmental goals
- Ranked 14th on the Dow Jones Sustainability Index Emerging Markets Index in 2021
Strengths:
- Iconic brands with strong heritage and trust
- Diversified product portfolio
- Extensive distribution network
- Focus on innovation and sustainability
Tata Consumer Products Products
ata Consumer Products boasts a diverse product portfolio across various categories, catering to different tastes and needs. Here’s a breakdown:
Beverages:
- Tea: Tata Tea (India’s #2 brand), Tetley (world’s #4 brand), Himalayan Water, Tata Water Plus
- Coffee: Eight O’Clock Coffee, Tata Starbucks (joint venture with Starbucks)
- Other beverages: Tata Gluco Plus (energy drink)
Food:
- Pulses: Tata Sampann (India’s leading national brand)
- Millets-based snacks & breakfast cereals: Tata Soulfull
- Spices: Tata Sampann
- Ready-to-eat meals: Tata Q (India’s #2 RTE brand)
Other:
- Salt: Tata Salt (India’s #1 brand)
Additionally, Tata Consumer Products operates in:
- Spices through Tata Sampann brand
- Health and wellness supplements through Tata Gluco Plus
Tata Consumer Products Fundamentals
Financials:
- Market capitalization: ₹1,09,986 crore (as of February 23, 2024)
- Revenue: ₹12,847 crore (FY23)
- Profit: ₹2,385 crore (FY23)
- P/E ratio: 86.00 (as of February 23, 2024)
- Debt-to-equity ratio: 0.41
Tata Consumer Products Revenue and Net Profit
| Year | Revenue (Cr) | Net Profit (Cr) |
|---|---|---|
| FY20 | 11,439 | 1,854 |
| FY21 | 11,730 | 2,040 |
| FY22 | 12,444 | 2,202 |
| FY23 | 12,847 | 2,385 |
Tata Consumer Products Shareholding Patterns
Promoters:
- Tata Sons Private Limited holds 34.42% as of December 31, 2023.
- No promoter shares are pledged.
Institutional Investors:
- Foreign Institutional Investors (FIIs) hold 25.62% as of December 31, 2023.
- Domestic Institutional Investors (DIIs) hold 17.10% as of December 31, 2023.
Retail Investors:
- Public shareholding accounts for 23.00% as of December 31, 2023.
Read more: NBCC Share Price Target for 2025, 2026, 2027, 2028, 2029
Tata Consumer Products Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Share Price Target |
|---|---|
| 2025 | 1500 |
| 2026 | 2000 |
| 2027 | 2500 |
| 2028 | 3000 |
| 2029 | 3500 |
Tata Consumer Products Share Price Target for 2025
Tata Consumer Products Share Price Target for 2025 is 1500.
Tata Consumer Products Share Price Target for 2026
Tata Consumer Products Share Price Target for 2026 is 2000.
Tata Consumer Products Share Price Target for 2027
Tata Consumer Products Share Price Target for 2027 is 2500.
Tata Consumer Products Share Price Target for 2028
Tata Consumer Products Share Price Target for 2028 is 3000.
Tata Consumer Products Share Price Target for 2029
Tata Consumer Products Share Price Target for 2029 is 3500.
Tata Consumer Products Dividend History
| Date | Dividend per Share (₹) | Annualized Dividend Yield (%) |
|---|---|---|
| May 25, 2023 | 8.45 | 1.26 |
| June 09, 2022 | 6.05 | 0.87 |
| June 10, 2021 | 4.05 | 0.58 |
| June 18, 2020 | 2.70 | 0.39 |
| June 20, 2019 | 2.50 | 0.36 |
| June 20, 2018 | 2.50 | 0.36 |
| Aug 04, 2017 | 2.35 | 0.34 |
| Aug 08, 2016 | 2.25 | 0.33 |
Future Outlook of Tata Consumer Products
Positive Factors:
- Strong brand portfolio: Tata Consumer Products boasts iconic brands like Tata Tea, Tetley, Eight O’Clock Coffee, and Tata Salt with strong brand loyalty and heritage.
- Diversified product portfolio: The company offers a wide range of products catering to diverse consumer needs, including tea, coffee, salt, spices, pulses, and ready-to-eat meals. This diversification helps mitigate risk and capitalize on various market trends.
- Expanding international presence: The company aims to grow its international business through organic expansion and acquisitions, leveraging its strong brands and product portfolio.
- Growth in digital and e-commerce channels: Investments in digital marketing and e-commerce platforms tap into the growing online consumer base.
- Focus on sustainability and healthy food options: Commitment to sustainable practices and development of new product lines focused on health and wellness aligns with growing consumer preferences.
- Strong financial performance: The company has experienced consistent revenue and profit growth in recent years, indicating strong financial health.
Risks Associated With Investing in Tata Consumer Products
Challenges:
- Competition: Facing stiff competition from established players in the FMCG industry both domestically and internationally.
- Volatile commodity prices: Susceptible to fluctuations in the prices of key raw materials like tea, coffee, and spices.
- Evolving consumer preferences: Constant adaptation and innovation are required to meet changing preferences towards healthier and more convenient food options.
- Economic slowdown: Potential impact on consumer spending and demand for discretionary products.
Read more: LT Foods Share Price Target for 2025, 2026, 2027, 2028, 2029
Tata Consumer Products Competitors
Tata Consumer Products operates in a diverse and competitive FMCG landscape, facing challenges and opportunities from various players. Here’s a breakdown of their key competitors:
Domestic Competitors:
- Britannia Industries: A major player in biscuits, bakery products, dairy, snacks, and beverages.
- Nestle India: Offers a wide range of food and beverage products, including Maggi noodles, KitKat chocolates, and Nescafe coffee.
- Dabur India: Well-known for its Ayurvedic and herbal products, also offers FMCG items like toothpaste, hair care, and packaged foods.
- Hindustan Unilever Limited (HUL): A dominant force in the FMCG sector with a vast portfolio, including tea, coffee, soaps, detergents, and personal care products.
- ITC Limited: Offers a variety of products, including cigarettes, packaged foods, personal care products, and stationery.
- Godrej Consumer Products Limited: Focuses on personal care, household products, and air care segments.
- Marico Limited: Offers edible oils, hair care products, and fabric care solutions.
International Competitors:
- Unilever: A global leader in FMCG with a strong presence in tea, coffee, personal care, and home care segments.
- PepsiCo: Offers a wide range of beverages, snacks, and food products.
- Nestlé: A global food and beverage giant with a diverse portfolio.
- Archer Daniels Midland Company (ADM): A major processor of agricultural commodities and producer of food ingredients.
- Strauss Group: A leading coffee company with a global presence.
- Jacobs Douwe Egberts (JDE): A leading coffee and tea company with global operations.
Competition by Segment:
- Tea: HUL (Brooke Bond), Unilever (Lipton), and regional players like Jay Shree Tea & Industries Ltd.
- Coffee: Nestle (Nescafe), Starbucks, and international brands like Jacobs and Lavazza.
- Salt: ITC (Sun Brand), HUL (Annapurna), and regional players.
- Spices: MDH, Everest, and regional players.
- Pulses: ITC (Bingo!), HUL (Dalda), and regional players.
- Ready-to-eat meals: ITC (Yippee!), Britannia (Treat), and several regional players.
Competitive Advantages:
- Strong brand portfolio with heritage and trust
- Diversified product offerings catering to various needs
- Extensive distribution network across India and internationally
- Focus on innovation and sustainability
- Growing digital presence
Tata Consumer Products FAQs
General:
- What are Tata Consumer Products’ main products and brands?
- Tea (Tata Tea, Tetley)
- Coffee (Eight O’Clock Coffee, Tata Starbucks)
- Salt (Tata Salt)
- Spices (Tata Sampann)
- Pulses (Tata Sampann)
- Ready-to-eat meals (Tata Q)
- Where does Tata Consumer Products operate?
- Primarily in India, but also has a presence in over 40 countries worldwide.
- What is Tata Consumer Products’ mission?
- “To nurture the human spirit – one person, one cup, one neighbourhood at a time”
- What are the company’s sustainability goals?
- Reducing its environmental impact, sourcing responsibly, and empowering communities.
Financials:
- What is Tata Consumer Products’ market capitalization?
- Approximately ₹1,09,986 crore (as of February 23, 2024).
- What is the company’s revenue and profit?
- Revenue: ₹12,847 crore (FY23)
- Profit: ₹2,385 crore (FY23)
- What is the company’s dividend history?
- The company has increased its dividend payout consistently over the past few years. The current dividend yield is approximately 1.26%.
Products and Brands:
- What are the differences between Tata Tea and Tetley?
- Tata Tea is primarily focused on the Indian market, while Tetley has a strong international presence. Both brands offer a variety of black and green teas.
- What is the story behind Tata Salt?
- Tata Salt was instrumental in bringing iodized salt to India to combat iodine deficiency.
- What are some of the popular Tata Q ready-to-eat meals?
- Tata Q offers a variety of quick and easy meal options, including dals, curries, and rice dishes.
Investment:
- What is the future outlook for Tata Consumer Products?
- The company’s future outlook appears promising, driven by its strong brands, diversified product portfolio, and focus on innovation and sustainability. However, it faces challenges from competition, volatile commodity prices, and evolving consumer preferences.
